Delek in Ithaca Energy takeover

Israel’s Delek Group said it has reached an agreement with Ithaca Energy to acquire the remaining shares in the company for a total consideration of C$681 million (US$524 million).

Delek Group, that already holds a 19.7 percent of the share capital of Ithaca, said the takeover offer is part of its plans to expand its international energy operations.

Ithaca Energy, a North Sea oil and gas operator, listed both on the Toronto Stock Exchange and the London Stock Exchange, is a Canadian incorporated company with headquarters in Aberdeen, United Kingdom.

Delek’s offer represents a 12 percent premium on the Toronto Stock Exchange closing price of Ithaca’s shares on February 3, 2017, Delek said in its statement on Monday.

The takeover bid has already been assessed by a committee appointed by Ithaca’s board of directors in consultation with its financial advisor RBC Capital Markets. The committee unanimously recommended the shareholders to accept the offer.

For completion of the transaction, Delek Group will publish the takeover bid circular by the end March 2017 after which it will be open to the public for a period of at least 35 days.

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